Eli Lilly and Company stock research
FY2025 Q3
Eli Lilly and (LLY) Gross Margin — Quarter Ended Sep 30, 2025
Revenue and gross profit both increased compared with the prior quarter and the same quarter last year. Gross margin weakened sequentially but improved year over year, reflecting a mixed performance.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue and gross profit both increased compared with the prior quarter and the same quarter last year. Gross margin weakened sequentially but improved year over year, reflecting a mixed performance.
- The relationship between cost of revenue growth and revenue growth drove the margin change. Sequentially, cost of revenue rose faster than revenue, compressing margin; year over year, cost of revenue grew slower than revenue, expanding margin.
- Compared with the immediately preceding quarter, gross margin was lower despite higher revenue and gross profit. Compared with the same quarter one year earlier, gross margin was higher, with revenue and gross profit also higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
82.9%
Gross profit
$14.6B
Revenue
$17.6B
Cost of revenue
$3.0B
Quarter-over-quarter change
-1.4 pts
Year-over-year change
+1.9 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Dec 31, 2024 | $13.5B | $11.1B | $2.4B | 82.2% |
| Mar 31, 2025 | $12.7B | $10.5B | $2.2B | 82.5% |
| Jun 30, 2025 | $15.6B | $13.1B | $2.4B | 84.3% |
| Sep 30, 2025 | $17.6B | $14.6B | $3.0B | 82.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
-1.4 pts
Year-over-year change
Sep 30, 2024
+1.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship between cost of revenue growth and revenue growth drove the margin change. Sequentially, cost of revenue rose faster than revenue, compressing margin; year over year, cost of revenue grew slower than revenue, expanding margin.
Compared with the immediately preceding quarter, gross margin was lower despite higher revenue and gross profit. Compared with the same quarter one year earlier, gross margin was higher, with revenue and gross profit also higher.
Monitor the trend of cost of revenue relative to revenue, as its growth rate has diverged between sequential and year-over-year comparisons.